IndianaHB 1042Second Regular Session 124th General Assembly (2026)HouseWALLET

Regulation and investment of cryptocurrency.

Sponsored By: Kyle Pierce (Republican)

Signed by Governor

Summary

Provides that the following shall offer, as a regular investment program, a self directed brokerage account that offers at least one cryptocurrency investment option: (1) The legislators' defined contribution plan. (2) The Hoosier START plan. (3) Specified public employees' retirement fund plans and accounts. (4) Specified teachers' retirement fund plans and accounts (including the teachers' pre-1996 account). Prohibits a public agency, other than the department of financial institutions, or a county, municipality, or township from adopting or enforcing a rule, ordinance, or other regulation that does any of the following: (1) Prohibits, restricts, or impairs an individual's ability to: (A) accept digital assets as a method of payment for legal goods and services; or (B) take custody of digital assets using specified technologies. (2) Imposes taxes or fees on: (A) use or acceptance of digital assets as a method of payment for legal goods and services; or (B) taking or maintaining custody of digital assets using a self-hosted wallet or hardware wallet; that are not applicable to comparable financial transactions that do not involve digital assets. (3) Prohibits, restricts, or impairs the ability of an individual or business to engage in specified activities pertaining to blockchains. Prohibits a public agency, other than the department of financial institutions, from adopting or enforcing a rule, ordinance, or other regulation that prohibits operation of a digital mining business. Prohibits a county, municipality, or township from adopting or enforcing a rule, ordinance, or other regulation that does any of the following: (1) Prohibits a digital asset mining business from operating in an area zoned for industrial use, or subjects a digital asset mining business located in an area zoned for industrial use to noise restrictions that are not applicable to other businesses operating in an area zoned for industrial use. (2) Prohibits private digital asset mining in a private residence located in an area that is zoned for residential use, or subjects private digital asset mining in a residence located in an area zoned for residential use to noise restrictions that do not apply to other residences in an area zoned for residential use. Provides that development or use of software for noncustodial transfer of digital assets does not constitute money transmission for purposes of statutes regarding licensure of money transmitters. Provides that a court may compel a person to disclose a digital asset private key only if no other admissible information is sufficient to provide access to the digital asset.

financial institutionsthe senateinsurance and financial institutions

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Bill Overview

Analyzed Economic Effects

7 provisions identified: 6 benefits, 0 costs, 1 mixed.

Crypto owners gain private-key court protections

Beginning July 1, 2026, Indiana courts face limits on requiring disclosure of digital-asset private keys. A court can require disclosure only when no other admissible information is sufficient to provide access to the asset.

Residents gain protection for home mining

Beginning July 1, 2026, local governments cannot ban private digital-asset mining in homes zoned for residential use. They also cannot impose mining noise limits that do not apply to other residences in residential zones. Noise limits that apply equally to other residences remain allowed.

Crypto users protected from special taxes

Beginning July 1, 2026, local governments and most Indiana public agencies cannot impose special digital-asset taxes or fees. This covers payments for legal goods and services and custody through self-hosted or hardware wallets. Charges remain allowed when they also apply to comparable financial transactions without digital assets. The restriction does not apply to the Department of Financial Institutions.

Fewer government limits on crypto use

Beginning July 1, 2026, local governments cannot restrict digital-asset payments for legal goods and services. They also cannot restrict holding assets in self-hosted or hardware wallets. These protections also cover running blockchain nodes, writing blockchain software, transferring digital assets through blockchains, and staking. The same limits apply to other Indiana public agencies, except the Department of Financial Institutions.

Mining businesses gain protection from bans

Beginning July 1, 2026, most Indiana public agencies cannot ban businesses that meet the law's digital-asset mining definition. The Department of Financial Institutions is exempt, and location-based zoning enforcement remains allowed under state zoning law. Local governments cannot ban mining businesses in industrial zones when they meet the general requirements for operating there. They also cannot impose noise limits that do not apply to other industrial businesses.

Transfer software avoids money transmission rules

Beginning July 1, 2026, developing or using qualifying noncustodial digital-asset transfer software is excluded from Indiana's definition of money transmission. This covers software for transferring assets without taking custody of them. Developers and users are outside the state's money-transmission classification for that activity.

Public workers gain crypto choices with fees

Covered Indiana public retirement and deferred-compensation plans must offer a self-directed brokerage account by July 1, 2027. The account must include at least one cryptocurrency investment option. Payment stablecoins do not count as cryptocurrency for this requirement. Plan boards can set investment guidelines, account valuation methods, and rules for choosing or changing investments. They also set administrative fees that can be charged to participant accounts; the law does not specify fee amounts.

Sponsors & Cosponsors

Sponsor

  • Kyle Pierce

    Republican • House

Cosponsors

  • Chris Judy

    Republican • House

  • Heath VanNatter

    Republican • House

  • Jake Teshka

    Republican • House

  • Kyle Walker

    Republican • Senate

  • Scott Baldwin

    Republican • Senate

Roll Call Votes

All Roll Calls

Yes: 147 • No: 85

House vote • 2/25/2026

House concurred with Senate amendments

Yes: 59 • No: 33

Senate vote • 2/19/2026

Third reading: passed

Yes: 35 • No: 10

House vote • 1/22/2026

Third reading: passed

Yes: 53 • No: 42

Actions Timeline

  1. Public Law 49

    3/3/2026House
  2. Signed by the Governor

    3/3/2026House
  3. Signed by the President of the Senate

    2/27/2026Senate
  4. Signed by the President Pro Tempore

    2/26/2026Senate
  5. House concurred with Senate amendments; Roll Call 370: yeas 59, nays 33

    2/25/2026House
  6. Signed by the Speaker

    2/25/2026House
  7. Motion to concur filed

    2/24/2026House
  8. Returned to the House with amendments

    2/20/2026Senate
  9. Third reading: passed; Roll Call 198: yeas 35, nays 10

    2/19/2026Senate
  10. Second reading: ordered engrossed

    2/16/2026Senate
  11. Committee report: amend do pass, adopted

    2/12/2026Senate
  12. First reading: referred to Committee on Insurance and Financial Institutions

    1/26/2026Senate
  13. Referred to the Senate

    1/23/2026House
  14. Senate sponsors: Senators Walker K, Baldwin

    1/22/2026House
  15. Third reading: passed; Roll Call 66: yeas 53, nays 42

    1/22/2026House
  16. Second reading: amended, ordered engrossed

    1/20/2026House
  17. Amendment #4 (Pierce K) prevailed; voice vote

    1/20/2026House
  18. Amendment #2 (DeLaney) failed; voice vote

    1/20/2026House
  19. Amendment #1 (DeLaney) failed; voice vote

    1/20/2026House
  20. Committee report: amend do pass, adopted

    1/14/2026House
  21. Authored by Representative Pierce K

    12/2/2025House
  22. Coauthored by Representatives Teshka, Judy, VanNatter

    12/2/2025House
  23. First reading: referred to Committee on Financial Institutions

    12/2/2025House

Bill Text

  • Engrossed House Bill (S)

  • Enrolled House Bill (H)

  • House Bill (H)

  • Introduced House Bill (H)

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